The launch of the TRUMP token, associated with President Donald Trump, sent shockwaves through the cryptocurrency market. The token’s meteoric rise led to an unexpected surge in demand, causing liquidity issues for crypto payment company MoonPay.
To address the sudden surge, MoonPay secured a significant emergency loan of $160 million from Galaxy Digital and Ripple.
The Unexpected Surge in the Demand of $TRUMP
$TRUMP token came live just before President Trump’s swearing-in ceremony and quickly gained massive traction. Its market capitalization soared from nearly $200 million to over $13 billion within 48 hours, generating more than $20 billion in trading volume.
This sudden spike caught MoonPay off guard as it struggled to meet the overwhelming demand through its ‘Moonshot‘ mobile app.
MoonPay initially estimated it needed around $50 million in loans to cover its immediate needs. However, as demand exceeded expectations, this figure quickly doubled to $100 million.
MoonPay President, Keith Grossman, described the situation as urgent because their funds were locked in BlackRock accounts when banking services were unavailable over the weekend.
Securing Emergency Funding and the Aftermath
For financial assistance to maintain liquidity and ensure uninterrupted service for its users, MoonPay turned to Galaxy Digital and Ripple. Mike Novogratz of Galaxy Digital provided an initial loan of $100 million. This came after verifying that MoonPay had sufficient reserves at BlackRock.
However, demand exceeding expectations, intensified by Melania Trump’s launch of the MELANIA tokens, required another $60 million from Ripple Labs CEO Brad Garlinghouse.
Ripple agreed to provide additional funding only after thorough vetting processes were completed. This included Ivan Soto-Wright pledging his personal assets and ensuring no liens on MoonPay’s reserve capital.
Despite these challenges, all loans were fully repaid by January 21 once access was regained to their traditional finance accounts.
The rapid growth during this period saw Moonshot onboard approximately 750,000 new users within one week following the $TRUMP token’s debut.
The explosive start-up phase reached valuations near $14.5 billion at peak levels before plummeting nearly 80% since then.
According to blockchain analytics firms, this dramatic fluctuation left many smaller investors facing substantial losses while larger ones profited handsomely.
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